Correlation Between Yapi Ve and Is Yatirim

Can any of the company-specific risk be diversified away by investing in both Yapi Ve and Is Yatirim at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Yapi Ve and Is Yatirim into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Yapi ve Kredi and Is Yatirim Menkul, you can compare the effects of market volatilities on Yapi Ve and Is Yatirim and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Yapi Ve with a short position of Is Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yapi Ve and Is Yatirim.

Diversification Opportunities for Yapi Ve and Is Yatirim

0.9

Correlation Coefficient

Yapi Ve  Is Yatirim

Almost no diversification

The 3 months correlation between Yapi and ISMEN is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Yapi ve Kredi and Is Yatirim Menkul in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Is Yatirim Menkul and Yapi Ve is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Yapi ve Kredi are associated (or correlated) with Is Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Is Yatirim Menkul has no effect on the direction of Yapi Ve i.e., Yapi Ve and Is Yatirim go up and down completely randomly.

Pair Corralation between Yapi Ve and Is Yatirim

Assuming the 90 days trading horizon Yapi Ve is expected to generate 1.8 times less return on investment than Is Yatirim. But when comparing it to its historical volatility, Yapi ve Kredi is 1.09 times less risky than Is Yatirim. It trades about 0.11 of its potential returns per unit of risk. Is Yatirim Menkul is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  4,142  in Is Yatirim Menkul on October 6, 2024 and sell it today you would earn a total of  460.00  from holding Is Yatirim Menkul or generate 11.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	95.45%
Values	Daily Returns

Yapi ve Kredi  vs.  Is Yatirim Menkul

Yapi ve Kredi

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Yapi ve Kredi are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Yapi Ve demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Is Yatirim Menkul

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Is Yatirim Menkul are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Is Yatirim demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Yapi Ve and Is Yatirim

The main advantage of trading using opposite Yapi Ve and Is Yatirim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yapi Ve position performs unexpectedly, Is Yatirim can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Is Yatirim will offset losses from the drop in Is Yatirim's long position.

The idea behind Yapi ve Kredi and Is Yatirim Menkul pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.